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Xiaomi invests in more than 60 companies in 6 years


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BY : Diego GutiérrezMay Wed, 2019

Mobile phone companies such as Xiaomi and Apple are beginning to diversify at an accelerated pace in the face of the burden of a year-on-year decline in the number of phones sold. More and more people are extending the life of their mobile phones and high-end products are becoming less and less prevalent.

A clear example is what happened with Apple, which always published the number of iPhones sold on a quarterly and annual basis, however, after growth started to slow down and even reached a point of no return, the company decided to stop providing such information and start investing in other services or complementary products in order to be able to maintain sustainable growth in the long term.

Xiaomi

Something similar is happening to Xiaomi, a Chinese company focused on the low-cost smartphone market, which is increasingly increasing its product range, moving out of the traditional market and betting heavily on other hardware complements and lately investing in companies of software that can add value to the service offered by the brand.

Even so, there are significant differences between Xiaomi's way of growing and that of its competitors in the sector, as Xiaomi, in contrast with the The remainder has decided to invest in a large number of companies, more than 60 in the last 6 years.early on, entering early into rounds of capital increase "seeds or in the first series by obtaining an interesting participation but without controlling them, allowing them to develop their services and products in an autonomous way.by offering them technological support to take advantage of the synergies and being able to save a lot of money when they have grown by not having to pay very high multiples.

Since February, the company has officially announced three investments with very different characteristics:

Energy Monster

Energy Monster is a company of rentals of chargers for mobile phones and any electronic device by scanning a QR code in public places, allowing charging at strategic points in different Chinese cities.

Xiaomi has invested $30M in this company to accelerate the growth and deployment of ultra-fast chargers, thus facilitating the growth of the low-end phone market with lower battery capacity.

Qinlin Technology

Qinlin Technology is a company dedicated to the Community Internet of Things servicesThe new system, i.e. applied to communities of neighbours, can be used to monitor the efficiency of energy consumption, facilitate the rental process, get to know the neighbours better or even create ad-hoc advertisements for different communities.

In this case, Xiaomi has decided to invest in the company's "B series" because of the great potential for growth in services aimed at the country's affluent classes.

Zuiyou

Zuiyou is a social network for recommending and sharing videos and viral contentwhich is growing at Reddit levels in its creation, which is why Xiaomi has decided to be the main investor in the capital application that took place in February, investing $80M in the possibility that it will be a big hit and continue to grow in the coming years.

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